Pennsylvania paycheck calculator

One rate on all taxable wages: 3.07%.

State tax only. A Pennsylvania worksite also withholds a local earned income tax, set by where the employee lives or works, and a local services tax.

The local layer is deliberately not modelled: Act 32 leaves the earned income tax rate to each municipality and school district, the employer withholds the higher of the employee's resident rate and the non-resident rate of the worksite, and the flat-dollar local services tax is set the same way. Philadelphia sits outside Act 32 under its own wage tax, which is larger than the state rate on this page. A single figure for any of it would be a figure for nobody. Pennsylvania also parts company with the federal rule about what the rate is charged on, and in the direction that costs the employee: money an employee elects to put into a 401(k) is taxable compensation here, though the federal formula leaves it out. The state regulation on compensation says so at 61 Pa. Code section 101.6(k), and the employer withholding guide REV-415 says it in plain words among its taxable benefits, that payments into pension plans, 401(k) plans or other retirement plans made pursuant to the employee's election, by salary reduction agreement or through periodic payroll deductions, are taxable to employees and belong in Pennsylvania gross wages. A cafeteria plan premium is the other way about: section 101.6(c)(6) of the same regulation excludes elective contributions under a cafeteria plan for a nondiscriminatory health, accident or death plan, so those do come off the wages this rate is charged on.